At a Shareholders Meeting of Íslandsbanki hf. (“Íslandsbanki” or the “Bank”), held on 30 June 2025 the Board of Directors of the Bank was authorised to approve a share option plan in compliance with Article 10 of the Income Tax Act No. 90/2003 and to enter into share option agreements with employees based on it. The Directorate of Internal Revenue (ríkisskattstjóri) approved the share option plan on 21 July 2025.

Share option agreements have now been concluded with employees in accordance with the approved share option plan. According to the plan the share option applies to all permanent employees of Íslandsbanki, except for employees of the Bank’s Internal Audit division, and the objective of the plan is to align better the long-term interests of employees and the Bank.

According to the plan each option holder acquires the right to buy shares in Íslandsbanki for up to ISK 1,500,000 once a year for five years, following the release of the Bank’s six months results in 2026, 2027, 2028, 2029 and 2030, for the total maximum amount of ISK 7,500,000.

The purchase price is the weighted average traded price in transactions with the Bank’s shares 10 business days before the agreement date, being ISK 126.4 a share.

A total of 743 employees entered into option agreements on up to 8,817,181 shares per year based on 100% exercise of share options.

The share option plan of Íslandsbanki is attached, confirmed by the Directorate of Internal Revenue (in Icelandic).